Vietnam feasibility study - EITI

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punishment once discovering the discrepancies, if any, and the accountability of the company
about these discrepancies.
• Further enhancing the oversight and monitoring activity about the financial disclosure of the
company and considering enforcement as a criterion to evaluate the efficiency of the company.
• Closely overseeing mineral extraction to reduce illegal exploitation and trading on mineral
resources causing to a loss of resources and state revenue.
vI.2 - General cOmmenT
Most respondents agreed to increase transparency in the extractive industry to maximize the benefits
from mineral extraction to the state, enhance the investment climate, and fight against corruption. The
EITI is deemed to be a good choice. However, EITI implementation would confront some considerable
challenges and barriers, particularly institutional and political barrier because they would affect some
interest groups. Beside this, some respondents flinched when mentioning transparency and have
no clear opinion about the EITI implementation in Vietnam. This could be a significant challenge in
promoting the EITI in Vietnam.
vI.3 - recOmmenDaTIOn fOr THe rOaD maP Of eITI ImPlemenTaTIOn In vIeTnam
Promoting information disclosure and transparency in the extractive industry of Vietnam is essential.
However, in the current context with many institutional challenges and Vietnam’s level of development,
the EITI program should be strategized in a long term perspective and by a systematic approach. This
study shows that in the first phase, the scope of the EITI programs should focus only on some types
of large reserves minerals, which contribute significantly to state revenues and inadequacies in the
work management of petroleum, coal and titanium. Moreover, the distribution of minerals is only
concentrated in a certain number of provinces, such as over 90% of the country’s coal production is
concentrated in Quang Ninh province, so the implementation of EITI would have many advantages.
In the first phase, the EITI program should not involve all the extractive enterprises in Vietnam because
the number of mining companies in Vietnam is large. Instead, it should focus on large state owed and
foreign invested enterprises. Through this investigation, many of these companies said they would be
willing to participate in the EITI implementation.
The EITI is an open initiative, in which each country can build the program scope and schedule for
their participation in line with the context of each country. Here are some basic steps for Vietnam to
join the EITI based on the current context of Vietnam and guidance on the EITI implementation of the
World Bank (World Bank, 2008):
step 1: Preparation for eItI participation
• To decide on the participation in EITI, the Government of Vietnam needs to consult the parties
who are directly affected by participation in EITI, including state management agencies,
extractive companies and other social organizations. The forms of consultation may be held via
conference programs introducing EITI as well as in the context of Vietnam’s industrial sector to
build consensus on EITI participation between the parties.
• Offer an official notice to the public of its intent to participate in EITI through the mass media.
This official notification was sent to relevant institutions such as the World Bank, the International
Committee of EITI, the World Monetary Fund and regional development banks. In most countries
that implement EITI, the government announced the intention to join EITI through the organization
of a start up workshop with the goal of transmitting messages of the government to the public
and began to build consensus among stakeholders.
The Extractive Industries Transparency Initiative and the Implementation Perspective of Vietnam